Yahoo Finance Zacks.com featured highlights include PulteGroup, Novartis, Boyd Gaming, Cummins and W.W. Grainger
For Immediate Release
Chicago, IL – May 9, 2023 – Stocks in this week’s article are PulteGroup Inc. PHM, Novartis NVS, Boyd Gaming Corp. BYD, Cummins CMI and W.W. Grainger Inc. GWW.
5 Dividend Growth Stocks to Buy for Safe Returns
Wall Street is caught in feeble trading triggered by an uncertain Fed policy, growing geopolitical tensions and recession fears. This has compelled investors to look for safe and defensive bets, thus raising the appeal for dividend investing. In fact, applying some smart-beta strategies to the dividend investing world could fetch higher returns.
This is because the strategy helps to capture market inefficiencies in a transparent way by adding extra metrics like volatility, revenues, earnings, momentum and other fundamental factors to the market cap or rules-based indices. And nothing seems better than picking the dividend growth strategy.
We have selected five dividend growth stocks — PulteGroup Inc., Novartis, Boyd Gaming Corp., Cummins and W.W. Grainger Inc. — that could be solid choices for your portfolio.
Why Dividend Growth Strategy?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appear as winning strategies when some other parameters are also included.
Here are five of the 20 stocks that fit the bill:
Atlanta-based PulteGroup is engaged in homebuilding and financial services businesses, primarily in the United States. The company saw a solid earnings estimate revision of $1.34 over the past 30 days for this year and delivered an average earnings surprise of 15.6% over the past four quarters.
PulteGroup carries a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
Switzerland-based Novartis has one of the strongest and broadest portfolios of oncology drugs and generics, which has enabled it to maintain its dominant position as a top pharma company over the years. The company saw a solid earnings estimate revision of nine cents over the past 30 days for this year, with estimated growth of 9.2%.
At present, NVS has a Zacks Rank #2 (Buy) and a Growth Score of B.
Las Vegas-based Boyd Gaming is a multi-jurisdictional gaming company. It owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania. The company saw a positive earnings estimate revision of 37 cents over the past 30 days for this year and delivered an earnings surprise of 13.69% over the past four quarters.
Boyd Gaming has a Zacks Rank #2 and a Growth Score of B.
Indiana-based Cummins is a leading global designer, manufacturer and distributor of diesel and natural gas engines, and powertrain-related component products. It has seen a solid earnings estimate revision of 70 cents for this year over the past month, and has an estimated earnings growth rate of 30%.
The stock has a Zacks Rank #2 and a Growth Score of B.
Illinois-based W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair and operating products and services. The company has an estimated growth rate of 18.1% and delivered an average earnings surprise of 9.15% for the past four quarters.
GWW has a Zacks Rank #2 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2091453/5-dividend-growth-stocks-to-buy-for-safe-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novartis AG (NVS) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
PulteGroup, Inc. (PHM) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
